Zanu-PF defends bond notes

Zanu PF government officials have come out guns blazing to defend their recent controversial policy announced by the RBZ to bring into circulation Bond Notes.

Finance and Economic Development Minister Patrick Chinamasa, said Government was fully behind the announcements by RBZ Governor, John Mangudya, saying there were adequate consultations on the matter.

He said this in the National Assembly during a Questions without Notice session yesterday, when legislators sought to know the implications of the statement by  Mangudya.

Zanu-PF MP for Harare East, Terrence Mukupe, first asked for clarification on the five percent incentive for exporters whether middlemen would also benefit from the scheme.

"We are targeting producers who are producing for exports not middle people," said Minister Chinamasa.

MDC-T legislator for Kuwadzana East, Mr Nelson Chamisa, followed up demanding to know whether the Central Bank was allowed to announce introduction of bond notes arguing that it was a prerogative of Minister Chinamasa who was expected to bring the issue to Parliament first.

However, Chinamasa said there was consensus between the Central Bank and his ministry adding that they respected each other's boundaries.

Chamisa insisted that what Dr Mangudya did was illegal prompting Minister Chinamasa to invite the former for a legal battle in court.

Minister Chinamasa reiterated that the bond notes would be backed by a $200 million loan facility from the Afriexim bank.